TeraWulf Inc (NASDAQ:WULF) shares fell in Wednesday's premarket session. The decline follows a late Tuesday announcement regarding the pricing of an upsized public common stock offering.

Nasdaq futures are down 0.22% while S&P 500 futures have shed 0.19%.

Offering Upsized to $900 Million

The digital asset technology firm priced 47,400,000 shares at $19.00 per share. This upsized the gross proceeds to approximately $900 million from the initial $800 million target.

The company granted underwriters a 30-day option to buy an additional 7.11 million shares. The offering should close by Thursday.

On Tuesday, WULF stock gained 7.71% to close at $20.95. The offering announcement was at $19.00, much lower than Tuesday's closing price, which led to the stock falling on Wednesday.

The company plans to use the net proceeds for its Hawesville, Kentucky, data center campus.

This includes repaying a bridge credit facility and funding future site acquisitions. TeraWulf focuses on industrial-scale infrastructure for Bitcoin (CRYPTO: BTC) mining and high-performance computing (HPC).

Preliminary Q1 Results Released

On Tuesday, TeraWulf released preliminary first-quarter results. Revenue is expected to be between $30 million and $35 million. CFO Patrick Fleury stated, "Our preliminary results reflect a business that has effectively transitioned to long-term, credit-enhanced revenues."

Rising Short Interest

Recent data shows short interest in TeraWulf increased from 96.58 million to 98.36 million shares. This represents 28.79% of the company's float. At current average volumes, it would take 3.28 days for short sellers to cover their positions.

Technical Analysis

TeraWulf is still holding a strong uptrend on the chart, trading near the top of its $2.19 to $20.98 52-week range. The stock is trading 19.6% above its 20-day simple moving average (SMA) and 34.2% above its 100-day SMA.

The relative strength index (RSI), a momentum gauge, is 72.19. The 12-month gain of 814.85%.

  • Key Resistance: $21.00
  • Key Support: $16.50

WULF Stock Price Activity: TeraWulf shares were down 5.97% at $19.70 during premarket trading on Wednesday, according to Benzinga Pro data.

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